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The PMI EVM CoP is conducting a free webinar the "EVM Tini". 

In this session "Earned Value Mixology" looks at the main ingredients of a program (that uses Earned Value), notably, Budget, Schedule and Scope and, takes a light hearted look at what is Earned Value, the key elements, provides some helpful tips, benefits and some precautions.

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Study for the EVP While Helping Japan

The EzEVM™ workbook has provided projects and firms a low cost solution to performing EVM and refining their EVM processes.

The EzEVM MSExcel workbook template now includes "Schedule Adherence" and statistical forecasting of final CPI and SPI(t).

EVM data can be entered from any EVM software to provide these valuable analysis products as well as traditional EVM indicators.

"EVA Europe" is now "EVM Europe". The EVM Europe 2011 conference will be held in Valencia (Spain), most likely the 23rd & 24th of November. Stand by for final dates.

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Tidbit #20 Material, part 3

In the last EVM Newsletter we had installed all four tires on each of the planned two vehicles and thus we were on schedule. We had a cost variance due to the difference in our planned cost of $50 per tire and our estimated actual (accrual) cost of $53 per tire. We did not have the true actual cost yet.

In August we get vehicles 3 and 4 as planned. Late in the month vehicle 5 shows up, a month early. A total of 12 tires are installed. The BCWP for this month is (12 x $50) $600. Since we only planned to do vehicles 3 and 4 our BCWS for the month is (8 x $50) or $400. Our monthly SV is +$200 since we installed four more tires than planned.

Overall we planned to complete four vehicles by now but have completed five. The cumulative BCWP is (5 x 4 x $50) $1000 while the cumulative BCWS is (4 x 4 x $50) $800. The work package is complete since the BCWP ($1000) equals the BCWS (budget) for the tires ($1000).

Accounts payable has debited the project account for the payment to tire vendor. The tires actually cost $52.73 each. Our monthly ACWP is $632.76. The cumulative ACWP is (5 x 4 x $52.73) $1054.60. We make accounting adjustments to the prior months' ACWP to record the actual costs where we previously estimated the cost. We had estimated $53 per installed tire and now show the actual $52.73 per installed tire.

Our CV for the month is a negative $32.76 since we budgeted $50 for each installed tire and we paid $52.73. Overall our CV is a negative $54.60.

We bought twenty-six tires and have used twenty. None of the tires were found unusable during installation. We had not planned to use the spares but we do have to complete vehicle testing on our test track.

ANSI 748 requires us to account for all material. We bought 26 tires and have used 20. We now have 6 spares if needed during the vehicle off road track testing. We anticipate, based upon past experience, to use one tire for each 45 hours of track testing per vehicle. We update our PMB and plan the use of these tires using the same method used in planning the first 20. We review of when the track testing is planned to start, end, and the number of vehicles being testing concurrently. Then we show BCWS for the tires when we believe a spare might be used.

If we luck out and do not use any spares we can claim the material BCWP so that the testing work package BCWP equals the BCWS and adjust the ACWP to show their real cost. In the end the residual material and its cost is accounted for and the customer likely takes possession of the spare tires.

Next month...an addendum to the material discussion that will address one of a kind (bespoke) material and material drawn from company general inventory.